Saturday, October 20, 2012

The market took a large loss Friday and this brings some change to the wave (4) count that was previously believed to be complete. The alternate count from the last update is now the primary count. But in the longer term, there is no change to the view that the market is still in an uptrend with new recovery highs expected soon.

The waves since the last recovery high in September strongly suggest a correction lower is taking place. Friday was a very negative day, but the low reached earlier this month still has not been reached. While this is expected, a solid break of support should not occur.

An impulse wave down appears to be forming. Some follow through Monday for its completion makes sense.

The market took a large loss Friday and this brings some change to the wave (4) count that was previously believed to be complete. The alternate count from the last update is now the primary count. But in the longer term, there is no change to the view that the market is still in an uptrend with new recovery highs expected soon.

The waves since the last recovery high in September strongly suggest a correction lower is taking place. Friday was a very negative day, but the low reached earlier this month still has not been reached. While this is expected, a solid break of support should not occur.

An impulse wave down appears to be forming. Some follow through Monday for its completion makes sense.

My trading philosophy is 95% based on my own Elliott Wave analysis of the S&P 500. I try to keep my analysis and trading as simple as possible and do not use trend lines, channels, or definite retracement, price, or time targets. To me, inspecting the proportionality and symmetry of a market's price structure is the key to mastering the principle; it is through this that low-risk, high-reward trading opportunities are found.

Because they are the only things I look at when trading, the quality of the charts I post on this blog are very important to me. I think you will find my work to be the best Elliott Wave analysis of the S&P 500 on the internet.